Head of Content, Data & Research, Helixtap

Arusha Das

Head of Content, Data & Research

Global Commodities Alternative Data and Insights

Helixtap

Helixtap collects, processes and distributes proprietary data, analyses and forecasts for the rubber, latex and automotive markets

Commodities

<ul><li>Singapore's sanction on Russia which does not include rubber or rubber-related items is likely to have a limited impact on the Asian rubber industry.</li><li>However, the recent extension of sanctions on Belarus has cautioned the sellers as they sought more clarity on the situation and the way forward, sources said Helixtap. The ongoing tension between Russia and Ukraine has taken the entire commodity market on a spin while it was on the path of recovery from the aftermath of a pandemic.</li><li>Worsening the situation, some US, UK, and Europe sanctions on Russia which was recently extended on Belarus have made the picture murkier. Following the lead, Singapore recently imposed rare unilateral sanctions on Russia after it invaded Ukraine.</li></ul>

Singapore's sanction on Russia which does not include rubber or rubber-related items is likely to have a limited impact on the Asian rubber industry.However, the recent extension of sanctions on Belarus has cautioned the sellers as they sought more clarity on the situation and the way forward, sources said Helixtap. The ongoing tension between Russia and Ukraine has taken the entire commodity market on a spin while it was on the path of recovery from the aftermath of a pandemic.Worsening the situation, some US, UK, and Europe sanctions on Russia which was recently extended on Belarus have made the picture murkier. Following the lead, Singapore recently imposed rare unilateral sanctions on Russia after it invaded Ukraine.

UPDATE: Asian Rubber Sees Limited Impact Of Singapore’s Sanction On Russia

<ul><li>Pandemic, climate changes, floods, and geopolitics have taken over the baton from market fundamentals to be the key price drivers since 2020, and 2022 seems to be following the trend.</li><li>Disrupted supply chains, sanctions on Russia, and unpredictable weather have put Thai rubber producers and buyers in a spot lately. While soaring oil prices, freight rates, and a disrupted supply chain are withering the demand, early wintering and floods are impacting the output and squeezing the margins.</li><li>With concerns growing over dwindling output, major Thai rubber producers are again in dilemma whether to cater to the overseas demand or keep the margins healthy. "The market is quiet, and we are not keen to sell as well," said a producer source.</li></ul>

Pandemic, climate changes, floods, and geopolitics have taken over the baton from market fundamentals to be the key price drivers since 2020, and 2022 seems to be following the trend.Disrupted supply chains, sanctions on Russia, and unpredictable weather have put Thai rubber producers and buyers in a spot lately. While soaring oil prices, freight rates, and a disrupted supply chain are withering the demand, early wintering and floods are impacting the output and squeezing the margins.With concerns growing over dwindling output, major Thai rubber producers are again in dilemma whether to cater to the overseas demand or keep the margins healthy. "The market is quiet, and we are not keen to sell as well," said a producer source.

Thai Rubber Producers Caught In The Mix Of New World Order

CEO, Helixtap

Farah Miller

<ul><li>India is set to witness a marginal rise in rubber production in the financial year of 2021 (April 2021- March 2022) over 2020 owing to unpredictable weather and Omicron-driven demand slowdown.  The Rubber Board of India attributed the shortfall in the production to weather fluctuations in rubber cultivating parts of the country and slack in demand following the Omicron outbreak.</li><li>India's target for fiscal 2021 was 800,000 tons.   Overall, NR production has seen an upward trajectory in the past few years.</li><li>The country's rubber output saw a marginal rise at 715,000 tons in fiscal 2020 from 712,000 tons in fiscal 2019, and production in fiscal 2018 was at 651,000 tons.</li></ul>

India is set to witness a marginal rise in rubber production in the financial year of 2021 (April 2021- March 2022) over 2020 owing to unpredictable weather and Omicron-driven demand slowdown.  The Rubber Board of India attributed the shortfall in the production to weather fluctuations in rubber cultivating parts of the country and slack in demand following the Omicron outbreak.India's target for fiscal 2021 was 800,000 tons.   Overall, NR production has seen an upward trajectory in the past few years.The country's rubber output saw a marginal rise at 715,000 tons in fiscal 2020 from 712,000 tons in fiscal 2019, and production in fiscal 2018 was at 651,000 tons.

Weather And Pandemic Cap Indian Rubber Production Growth For 2021

<ul><li>India buyers might opt for alternative sourcesIndian tire manufacturers have to look for alternate sources for rubber as Thai rubber prices saw some uptick over the week. STR (Standard Thai Rubber) 20 is at a +US$20/mt premium on SIR (Standard Indonesian Rubber)20 owing to higher raw material cost and support from domestic demand. According to market sources, domestic demand remained strong in Thailand, with active trades reported this week at around US$1,840/mt for April as domestic buyers tried to take advantage of the absence of Chinese traders from the market.As a result, the Indian buyers have to depend more on domestic or African grades.Meanwhile, overall rubber spot prices saw some uptick over the week on the backdrop of the recent Russia and Ukraine conflict.  International markets saw oil breaching US$100/mt per barrel, and impacts on commodities is expected to be broad.DateGradeLocationPriceLowestHighest 2022-02-25 RSS5 Kottayam INR/Kg 160.5 INR/Kg 158.0 INR/Kg165.0  </li></ul>

India buyers might opt for alternative sourcesIndian tire manufacturers have to look for alternate sources for rubber as Thai rubber prices saw some uptick over the week. STR (Standard Thai Rubber) 20 is at a +US$20/mt premium on SIR (Standard Indonesian Rubber)20 owing to higher raw material cost and support from domestic demand. According to market sources, domestic demand remained strong in Thailand, with active trades reported this week at around US$1,840/mt for April as domestic buyers tried to take advantage of the absence of Chinese traders from the market.As a result, the Indian buyers have to depend more on domestic or African grades.Meanwhile, overall rubber spot prices saw some uptick over the week on the backdrop of the recent Russia and Ukraine conflict.  International markets saw oil breaching US$100/mt per barrel, and impacts on commodities is expected to be broad.DateGradeLocationPriceLowestHighest 2022-02-25 RSS5 Kottayam INR/Kg 160.5 INR/Kg 158.0 INR/Kg165.0  

India Buyers Might Opt For Alternative Sources

<ul><li>Geopolitical developments and position jostling have resulted in a tense military situation between Russia, Ukraine, and the Western World.</li><li>At the time of publishing, Russian President Vladimir Putin has ordered a “military operation” in Ukraine.</li><li>Subjected to further developments, it is still uncertain if Russia will indeed fully invade Ukraine or even which countries would participate in this war.</li></ul>

Geopolitical developments and position jostling have resulted in a tense military situation between Russia, Ukraine, and the Western World.At the time of publishing, Russian President Vladimir Putin has ordered a “military operation” in Ukraine.Subjected to further developments, it is still uncertain if Russia will indeed fully invade Ukraine or even which countries would participate in this war.

What Happens To Rubber Prices When Russia Fully Invades Ukraine?

Singapore

SGX Technically Specified Rubber 20 (TSR20) Futures: Effective from 16th May 2011, this contract will be migrated from SICOM platform to the SGX-DT platform. It will cease trading on SICOM at the close of business day Friday, 13th May 2011. Trading hours are revised as 7.55am to 6.00pm (no lunch break). Please refer to SGX products website for the new revised contract specifications. Exchange symbol: TF. Product Specifications: https://www2.sgx.com/derivatives/products/sicom-rubber?cc=TF

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Rubber Future SGX TSR20 (ORA COMDTY)

UPDATE: Asian Rubber Sees Limited Impact Of Singapore’s Sanction On Russia

Recent unprecedented Singapore sanction on Russia which does not include rubber or rubber-related items is likely to have a limited impact on the...

Helixtap

Thai Rubber Producers Caught In The Mix Of New World Order

Pandemic, climate changes, floods, and geopolitics have taken over the baton from market fundamentals to be the key price drivers since 2020, and...

Helixtap

Weather And Pandemic Cap Indian Rubber Production Growth For 2021

India is set to witness a marginal rise in rubber production in the financial year of 2021 (April 2021- March 2022) over 2020 owing to...

Helixtap

India Buyers Might Opt For Alternative Sources

25 Feb 2022 India Domestic Market

Helixtap

What Happens To Rubber Prices When Russia Fully Invades Ukraine?

Geopolitical developments and position jostling have resulted in a tense military situation between Russia, Ukraine, and the Western World.

Helixtap

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